Tennessee Consolidated Retirement System (TCRS) is investing $250m (€220.6m) alongside a debt fund managed by Berkshire Residential Investments.
TCRS told IPE Real Assets that it had approved the capital to Berkshire Bridge Loan Investors II-A.
Berkshire raised $1.47bn in April for its Berkshire Bridge Loan Investors II fund.
TCRS said the fund “provides TCRS with a differentiated source of returns through hard asset-backed lending that is highly cash-flow generative and short in duration. The deal sourcing is exceptional, driven by contractual relationships with lenders in the multifamily market.”
The pension fund also said the “investment exits are through tried-and-true buyers in the agencies and while, the market is supportive, the securitisation market, which are providing attractively priced, matched-term and non-market-to-market financing.”
The pension fund’s commitment was made for its $5.1bn strategic lending portfolio which invests via funds, co-investments, fund of funds and public securities.
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